Confirmed Order Book of 4,000 Buses: This Multibagger Automobile Stock Raises Stake in UK Subsidiary by 0.41 Per Cent, Investing Rs 500 Crore
The stock is up by 7.6 per cent from its 52-week low.
Ashok Leyland has increased its ownership in its UK subsidiary, Optare PLC, by 0.41 per cent, bringing its total shareholding to 93 per cent. This increase follows an investment of GBP 45 million (approximately Rs. 500 Crores). Optare PLC allotted 6,496,355,352 ordinary shares to the parent company at a price of Euro 0.006927 each on April 1, 2025.
Ashok Leyland, the flagship company of the Hinduja Group, is a major player in the Indian medium and heavy commercial vehicle (M&HCV) segment. It is the second-largest manufacturer of commercial vehicles in India and ranks fourth globally in bus manufacturing. The company holds a 31 per cent market share in the M&HCV bus and lorry segment and a 20 per cent share in the LCV segment as of FY24. Its business is primarily divided into commercial vehicles and financial services, with the former contributing 89 per cent to its revenue in FY24. The commercial vehicle segment saw a 78 per cent revenue growth between FY22 and FY24, driven by a 52 per cent increase in sales volume.
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Ashok Leyland has a strong presence in 50 countries and operates eight manufacturing plants in India, with additional facilities in the UAE and the UK. The company is also active in the electric vehicle segment through Switch Mobility, with over 950 electric buses deployed globally. Ashok Leyland aims to achieve a 35 per cent market share in the lorries and buses MHCV segment and plans to launch new products regularly in the LCV segment. The company incurred a capex of Rs 481 crore in FY24 and is expanding its manufacturing capabilities with a new plant in Lucknow.
Ashok Leyland has a market capitalisation of Rs 61,153 crore. The company's 1-year return is 23.53 per cent, while the 3-year return stands at 82.95 per cent.
Today, shares of Ashok Leyland Ltd plunged 0.4 per cent to Rs 208 per share from its previous closing of Rs 208.65 per share with an intraday high of Rs 210.12 per share and an intraday low of Rs 206.53 per share. The stock is up by 7.6 per cent from its 52-week low.
Investors should keep an eye on this multibagger automobile stock.
Disclaimer: The article is for informational purposes only and not investment advice.